EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019: Income from continuing operations $90,000* Loss from operations of a discontinued division (10,000) Gain from the disposal of the discontinued division 25,000 *Of this amount, revenues are $320,000 and expenses are $230,000. Required: 1. Prepare the journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. 2. Prepare EyeBeam’s 2019 income statement.
EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019: Income from continuing operations $90,000* Loss from operations of a discontinued division (10,000) Gain from the disposal of the discontinued division 25,000 *Of this amount, revenues are $320,000 and expenses are $230,000. Required: 1. Prepare the journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. 2. Prepare EyeBeam’s 2019 income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019:
| Income from continuing operations | $90,000* |
| Loss from operations of a discontinued division | (10,000) |
| Gain from the disposal of the discontinued division | 25,000 |
*Of this amount, revenues are $320,000 and expenses are $230,000.
Required:
| 1. | Prepare the |
| 2. | Prepare EyeBeam’s 2019 income statement. |
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